- USD/CHF falls sharply, signaling a potential end to Fed rate hikes with investors favoring the CHF.
- A dip in the pair below the 50 and 200-day moving averages at 0.9000 could lead to further declines.
- For a recovery, USD/CHF needs to break 0.9000 and target the November 1 high at 0.9112.
USD/CHF falls sharply in the middle of the North American session on Friday after the US employment report United States (USA) could mean the end of the tightening cycle of the Federal Reserve System (Fed). The US dollar (USD) therefore remains bid as investors piled into the Swiss franc (CHF) as seen by the pair trading at 0.8979, down 0.87%.
The daily chart shows that the pair is slightly biased to the downside, although it remained on the sidelines as USD/CHF fell below the confluence of the 50- and 200-day moving averages (DMA) around 0.9000. A daily close below the latter could see the major sink to another swing low at 0.8878, the low of October 24, before plunging to the daily low of August 30 of 0.8745.
on the other hand, USD/CHF buyers need to recapture 0.9000 – the confluence of the 50 and 200-DMA – to continue hoping to challenge the November 1 high at 0.9112 before challenging the May 31 high at 0.9147. Next would be the psychological level of 0.9200.
